SAN JUAN, Puerto Rico, Oct. 31, 2012 / PRNewswire / - Triple-S Management Corporation (NYSE: GTS), the leading managed care company in Puerto Rico, today Announced Consolidated Revenues of $ 606.2 million and operating income of $ 15.5 million for the three months ended September 30, 2012 . Net income was $ 11.7 million, or $ 0.41 per Diluted Share.
September-Quarter Consolidated Highlights
- Total consolidated operating Revenues Were $ 605.6 million;
- Operating income was $ 15.5 million;
- Consolidated loss ratio was 85.8%;
- Medical loss ratio (MLR) was 89.7%;
- Managed Care member month enrollment Increased 111.0%;
- Medicare member enrollment month rose 15.6%.
Ramon M. Ruiz-Comas, President and Chief Executive Officer of Triple-S Management Corporation, said, "We recorded another quarter of solid top-line growth, driven by premium Increases across all our managed care segments. Medicare In our business, we maintained a healthy mid-teens gain in membership. We did, However, experience a higher-than-normal Increase in claims in the Commercial business, the result of more hospital admissions and Increased Surgical Procedures, Which had been tracking at lower Levels in the first half of the year. Nonetheless, the period's results Were in line with internal expectations since the third quarter has the second highest Typically utilization rate in Any Given year. As we enter the fourth quarter, seasonally our strongest, we are reaffirming our 2012 outlook.
"In mid-October, CMS released Medicare Advantage Star Ratings for 2013 and all of our plans Demonstrated improvement. Our sales force now has a full array of products to offer MA as we proceed through open enrollment season," Ruiz-Comas continued.
"Recently, we Entered into an agreement with Abarca Health, Puerto-Rico based provider of healthcare information technology, clinical solutions, and pharmacy benefit management services, under Which it will serve as American Health's new PBM. This agreement, effective January 1, 2013 Will Provide Us with more positive pricing, Allowing us to better controlling our pharmacy costs in 2013 and beyond. "
Ruiz-Comas added, "To drive better performance in the Medicare Advantage segment, Susan Rawlings Molina has been Designated to head up the division Entire MA. Susan, President and CEO of Partners in Health Seniors, Inc. (the holding company of American Health), is an executive who has worked Accomplished at several major U.S. Managed Care Organizations During her career. Her first task will be to restructure the MA business, streamline our operations and Increase accountability, creating Greater efficiency and positioning us for further improvement in our Star ratings.
"In Addition, we recently appointed Juan Jose Diaz-Goitia to the position of Chief Information Officer. Formerly Executive Vice President of Triple-S Vida, Juan Jose Previously had been Chief Information Officer for Latin America and Puerto Rico at Verizon Information Services. In his new role, I will integrate the technology function across our family of companies to Improve efficiency and service to all of our Constituents, "Ruiz-Comas Concluded.
Selected Quarterly Details
- Pro Forma Net Income was $ 11.7 million, or $ 0.41 Per Diluted Share. Weighted average shares outstanding 28.5 million Were. This compares with Pro form net income of $ 12.3 million, or $ 0.43 per Diluted Share, in the Corresponding quarter of 2011, based on weighted average shares outstanding of 28.9 million.
- Consolidated Premiums Increased 7.7%, to $ 565.6 Million. The Increase was due to higher Principally member month enrollment in the Medicare and Commercial Businesses, as well as higher average per-member Commercial, per-month premiums.
- Consolidated Administrative Service Fees Rose 423.1%, to $ 27.2 Million. The significant Increase in service fees was driven by the Addition of the Medicaid ASO business (miSalud), effective November 1, 2011.
- Managed Care Membership. Managed Care Our ??membership grew by 109.8% year over year, reflecting the Addition of the miSalud business, In Which self-insured membership was 872.496 at the end of the quarter. Medicare memberships Increased 14.8% year-over-year, to 122.925. Fully-insured Commercial membership was up 0.5% from the same period last year.
- Managed Care Increased 200 Basis Points MLR, to 89.7%. The Increased MLR member results from higher enrollment in Medicare Advantage month, Which has a higher MLR than the Commercial business, and to greater-than-expected utilization and cost trends in the Medicare segment . The Commercial business also experienced higher utilization and cost trends, due to hospital admissions Primarily and surgical procedures.
- Consolidated Loss Ratio Increased 160 Basis Points, to 85.8%. The higher consolidated loss ratio Mainly Reflects the 200-basis-point Increase in the Managed Care MLR and an Increase in the claims Incurred in the Life segment, Resulting from a higher loss ratio in the Cancer business and an Increase in the liability for future policy benefits.
- Consolidated Operating Expense Ratio Rose 180 Basis Points, to 17.6%. The higher consolidated operating expense ratio is due to the Increase in self-insured Contracts Associated with our participation in the program miSalud.
- Consolidated Operating Income Decreased 6.6%, to $ 15.5 Million. Increased The Decrease Reflects the MLR in the Medicare business, partly offset by the contribution from the miSalud program, and the improved operating income of the Property and Casualty segment.
- Consolidated Operating Income Margin Was 2.6%. The 50-basis-point Decrease in the consolidated operating Primarily margin is the result of the lower profitability in our Managed Care and Life Insurance Businesses, offset, in part, by the improved profit margin of the Property and Casualty Insurance segment.
- Consolidated Effective Tax Rate Was 11.4%. Effective tax rate The lower Reflects the Decrease in taxable income in the Managed Care Insurance segment. The consolidated income tax expense by $ 0.4 million Decreased, or 21.1%, During This Quarter.
- Parent Company Information. During This Quarter, Triple-S Management repaid $ 25.0 million in long-term debt with a 6.7% interest rate, at no premium.
Click here to continue reading
(0)
(0)